Alkami (ALKT) investor relations material

Executive summary

• Q3 revenue rose 19.4% YoY to $134.9M and Adjusted EBITDA reached $26.3M, both ahead of expectations; FY26 guidance was raised.

• ARR ended Q3 at $533.2M, up 18.7% YoY, while registered digital banking users reached 24.4M, up 13%.

• The strategic review concluded with a unanimous board decision to pursue the long-range plan as an independent public company; management said uncertainty had affected customer and prospect decisions.

• AI priorities include agentic banking experiences, enterprise workflows, and fraud analysis; three AI agents were in beta for onboarding and account opening.

Financial highlights

• Q3 revenue was $134.9M versus $113.0M a year earlier; subscription revenue was $129.1M, or 95.7% of revenue.

• Adjusted EBITDA was $26.3M versus $16.0M, with a 19.5% margin and more than 530 bps of YoY expansion.

• Q3 GAAP net loss narrowed to $6.7M from $14.8M; operating loss narrowed to $6.2M from $12.9M.

• Non-GAAP gross margin was 63.1%, down from 63.7%; GAAP gross margin was 57.5%, up from 56.8%. Higher third-party product costs and mix pressured non-GAAP gross margin.

• Nine-month operating cash flow was $39.1M and free cash flow was $32.4M; cash and marketable securities totaled $85.2M at September 30.

Outlook and guidance

• Q4 revenue guidance is $139.7M–$141.2M and Adjusted EBITDA guidance is $30M–$31M, with a 21.7% margin at midpoint.

• FY26 revenue guidance is $530.5M–$532M and Adjusted EBITDA guidance is $98M–$99M, with an 18.5% margin at midpoint.

• ~$800K of one-time revenue shifted from Q4 into Q3, largely from core conversions; slightly higher third-party costs from Q3 mix are expected to have a small Q4 impact.

• FY26 outlook assumes more than 500 bps of margin expansion; the 2030 framework targets the Rule of 45, ~300 bps of annual Adjusted EBITDA margin expansion, and stock-based compensation below 10% of revenue.